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Loop Industries(LOOP) - 2025 Q2 - Quarterly Results
LOOPLoop Industries(LOOP)2024-10-15 22:29

Financial Performance - Loop Industries reported a revenue decrease of 31to31 to 23 million for the three-month period ended August 31, 2024, compared to 54millionforthesameperiodin2023[12].−Forthesix−monthperiodendedAugust31,2024,revenuesdecreasedby54 million for the same period in 2023[12]. - For the six-month period ended August 31, 2024, revenues decreased by 52 to 29millioncomparedto29 million compared to 81 million in the same period in 2023[19]. - The net loss for the quarter increased by 88to88 to 4.839 million, compared to a net loss of 4.750millioninthesameperiodlastyear[15].−NetlossforthesixmonthsendedAugust31,2024,was4.750 million in the same period last year[15]. - Net loss for the six months ended August 31, 2024, was 10,028,000, compared to a net loss of 11,751,000forthesameperiodinthepreviousyear,indicatinganimprovementofapproximately14.711,751,000 for the same period in the previous year, indicating an improvement of approximately 14.7%[26]. - The company reported a basic and diluted net loss per share of 0.21 for the six months ended August 31, 2024, compared to 0.25forthesameperiodinthepreviousyear[26].ExpensesandLiabilities−Totalexpensesforthequarterwere0.25 for the same period in the previous year[26]. Expenses and Liabilities - Total expenses for the quarter were 4.9 million, with cash expenses projected to run at approximately 1.0millionpermonthfortheremainderoffiscal2025[6].−Researchanddevelopmentexpensesdecreasedby1.0 million per month for the remainder of fiscal 2025[6]. - Research and development expenses decreased by 93 to 1.945millionforthequarter,primarilyduetoareductioninemployeecompensationandplantexpenses[13].−Generalandadministrativeexpensesdecreasedby1.945 million for the quarter, primarily due to a reduction in employee compensation and plant expenses[13]. - General and administrative expenses decreased by 248 to 2.595million,mainlyduetoareductionininsurancecosts[14].−Totalcurrentassetsdecreasedfrom2.595 million, mainly due to a reduction in insurance costs[14]. - Total current assets decreased from 7,988,000 as of February 29, 2024, to 2,360,000asofAugust31,2024,representingadeclineofapproximately70.52,360,000 as of August 31, 2024, representing a decline of approximately 70.5%[25]. - Cash and cash equivalents decreased from 6,958,000 at the beginning of the period to 1,395,000attheendoftheperiod,adeclineofapproximately801,395,000 at the end of the period, a decline of approximately 80%[26]. - Total liabilities increased from 6,411,000 as of February 29, 2024, to 10,169,000asofAugust31,2024,anincreaseofapproximately58.510,169,000 as of August 31, 2024, an increase of approximately 58.5%[25]. - The company reported a significant increase in accounts payable and accrued liabilities, rising from 2,321,000 to $4,376,000, an increase of approximately 88.5%[25]. Strategic Initiatives - The Infinite Loop™ manufacturing facility in Gujarat, India, is on schedule, leveraging local textile waste as a primary feedstock for producing 100% recycled polyester[4]. - Loop expects to finalize a financing agreement with Reed Management SAS in November 2024, which includes an initial tranche of €10 million in convertible preferred securities[2]. - The company plans to utilize low-cost manufacturing in India to enhance competitiveness while supplying high-quality PET resin and polyester fiber[7]. - Loop's partnership with Ester Industries will facilitate the deployment of capital into low-cost manufacturing countries and a shift towards a licensing model in higher-cost regions[8]. - Loop Industries is pursuing a joint venture with Ester to construct a manufacturing facility in Gujarat Province, India, which is expected to enhance its market position[29]. Sustainability Efforts - The company has patented technology that allows for the depolymerization of waste PET plastic, contributing to sustainability efforts[27]. - Loop Industries aims to close the plastic loop by enabling infinite recycling of its Loop™ PET plastic and polyester fiber without degradation of quality[27].